Quote is Stable. The Signal is "Off."
The NBBO is $10.10 x $10.14. D-Limit buy order is booked at $10.10. The quote is stable.
ISO Sell order with a $10.09 limit crosses the spread; trade occurs at the resting price of $10.10.
Quote is Crumbling. The Signal is "On."
The NBBO is $10.10 x $10.14. A D-Limit buy order with a limit of $10.10 is booked at $10.09, 1 MPV below the unstable price ($10.10). The quote is unstable.
ISO Sell order with a $10.09 limit crosses the spread; trade occurs at the resting price of $10.09.
Resources to help you understand and use D-Limit.
Leveling the Playing Field for Lit Trading
A tool designed to help all market participants achieve better performance in displayed trading.
IEX D-Limit: A New Innovation for Displayed Trading
How D-Limit protects orders from latency arbitrage strategies.
D-Limit: One of These Things is Not Like the Others
D-Limit upends the economics of the rebate model.
To D-Limit and Beyond: Impact on IEX Exchange and the Broader Market
How D-Limit improves competition and promotes public price discovery.
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